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Income Tax
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Tax
NOTE 14 – INCOME TAX

 

  A. Measurement of results for tax purposes under the Israeli Income Tax (Inflationary Adjustments) Law, 1985 (the “Inflationary Adjustment Law”)
     
    Commencing January 1, 2008, the results of operations of Integrity Israel for tax purposes have been measured on a nominal basis.
     
  B. Tax assessments
     
    For federal, state and local income tax purposes the Company remains open for examination by the tax authorities for the tax years from 2017 through 2020 under the general statute of limitations.
     
    Notwithstanding, pursuant and subject to the provisions of article 145 of the Income Tax Ordinance, Integrity Israel’s tax returns that were filed with the tax authority up to and including 2016 are considered final.
     
  C. Carryforward tax losses
     
    As of December 31, 2020, the Company had cumulative net operating losses (NOL) for US federal purposes of approximately $9.3 million. $2.5 million of the federal net operating loss can be carried forward indefinitely and $6.8 million of the federal net operating loss can be offset against taxable income for 20 years that will expire between the years 2030-2037. Integrity Israel has losses carry forward balances for Israeli income tax purposes of approximately $38.9 million to offset against future taxable income for an indefinite period of time.
     
  D. The following is a reconciliation between the theoretical tax on pre-tax income, at the tax rate applicable to the Company (federal tax rate) and the tax expense reported in the financial statements:

 

    2020     2019  
             
Pretax income (loss)     (2,696 )     (3,516 )
Federal tax rate     21 %     21 %
Income tax expenses (benefit) computed at the ordinary tax rate     (566 )     (738 )
Non-deductible expenses     10       3  
Stock-based compensation     40       33  
Tax in respect of differences in corporate tax rates     (42 )     (51 )
Return to Provision     -       (149 )
Losses and timing differences in respect of which no deferred taxes assets were recognized     558       902  
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  E. Deferred taxes result principally from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Group’s future tax assets are as follows:

 

    2020     2019  
Composition of deferred tax assets:                
Provision for employee-related obligation     22       25  
Non-capital loss carry forwards     10,889       9,826  
Valuation allowance     (10,912 )     (9,851 )
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